NFT Investors Dump Cratered Tokens in Tax Write-Off Marketplaces
Hundreds of buyers with almost nugatory nonfungible tokens, or NFTs, rushed to tax-loss-harvesting marketplaces in the course of the closing days of final yr, dumping their as soon as expensive digital collectibles to offset positive aspects elsewhere of their portfolios.
That created a chance for at the least two on-line platforms launched to do one thing counterintuitive—create liquidity for belongings which might be, by design, illiquid, and nonfungible. Whereas most markets capitalize on progress alternatives for tradable belongings, these platforms shortly launched to assist buyers notice losses throughout a yr during which NFTs noticed each a growth and a bust.
Enterprise was brisk on each platforms as buyers raced the year-end tax deadline to promote their one-of-a-kind digital belongings for a fraction of a penny after buying them for hundred, or 1000’s, of {dollars} earlier within the yr.
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